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Move will harm India’s exports: FIEO

India’s exports will be hit and the trade deficit might widen after the devaluation of Chinese currency yuan by 2 per cent, which is bound to raise the competitiveness of outbound shipments from the neighbouring country, exporters’ body FIEO said on Tuesday. “The devaluation will affect India’s exports not only to China but to other countries also with increasing competitiveness of Chinese exports. This may swell the trade deficit further, which is already touching $50 billion, as imports from China may increase particularly as China is having excessive capacity in diverse sectors of manufacturing,” FIEO President S C Ralhan said. Ralhan said the move may lead to a currency war as can be seen by huge depreciation in numerous currencies such as Euro, Japanese Yen, Brazilian Real, Turkish Lira, etc. 
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